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If you want to know who really controls Gujarat State Fertilizers & Chemicals Limited (NSE:GSFC), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
Gujarat State Fertilizers & Chemicals is a smaller company with a market capitalization of ₹31b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about GSFC.
See our latest analysis for Gujarat State Fertilizers & Chemicals
What Does The Institutional Ownership Tell Us About Gujarat State Fertilizers & Chemicals?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Gujarat State Fertilizers & Chemicals already has institutions on the share registry. Indeed, they own 25% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Gujarat State Fertilizers & Chemicals's earnings history, below. Of course, the future is what really matters.
Gujarat State Fertilizers & Chemicals is not owned by hedge funds. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Gujarat State Fertilizers & Chemicals
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data suggests that insiders own under 1% of Gujarat State Fertilizers & Chemicals Limited in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than ₹113k worth of shares in the ₹31b company. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.